Supply Chain Management Overview

Why is this Important?

For EGCO Group, supply chain management is essential to optimize our business performance and ensure operational efficiency. An effective supply chain drives revenue growth, reduces costs, and minimizes procurement risks associated with the purchase of goods and services, making our suppliers a key stakeholder group in our business operations and processes. As such, we have guidelines in place to facilitate sustainable management in the supply chain and achieve organizational results and targets.

Stakeholder Impact on Materiality Topics

Employee

Investors

Supplier & Business Partner

Customers

Management Approach

Supply Chain Management Target

Long Term Target

  • Zero contractor accidents at worksites managed by EGCO Group

  • Supplier satisfaction rating on EGCO Group’s ESG strategies and operations

  • 100% of significant suppliers with a climate change plan integrating the roadmap to reach carbon neutrality by 2030.

2022 Target and Performance

  • Zero supplier fatalities

  • 100% of new suppliers have acknowledged the EGCO Group Supplier Code of Conduct

  • 100% of critical/ significant suppliers have been evaluated for sustainability topics.

  • Suppliers are satisfied with EGCO Group’s corporate sustainability (ESG) performance.

  • Critical/ significant suppliers are assessed for climate risk.

  • Critical/ significant suppliers are committed to reducing greenhouse gas emissions.

Supply Chain Management
[GRI 2-6 (2021)]

EGCO Group has supplier management guidelines that govern best practices at every stage of the organization’s supply chain to reduce risks associated with our electric production and capacity.

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Supply Chain Management Strategy

EGCO Group is committed to the sustainable procurement of goods and services, operating with excellence, transparency, and fairness in all processes.

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EGCO Group Supplier Code of Conduct

The EGCO Group Supplier Code of Conduct is built upon the Ten Principles of the United Nations Global Compact (UNGC) as well as our internal company standards and serves as a guide for our suppliers to follow.

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ESG Risk Assessment and Integration of ESG Factors into Supplier Selection

EGCO Group considers sustainability assessment results and ESG factors when selecting and screening suppliers to ensure suppliers can deliver raw materials and services that meet our company’s standards and expectations.

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Critical Supplier/ Significant Supplier Analysis

EGCO Group identifies suppliers as critical/significant based on spend amount, business relevance, and risk assessment results, categorized by the type of sustainability issue they pertain to. In additional, the criteria of country risk, sector risk and commodity risk are considered.

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Supplier Audit and Corrective Action

Critical/ Significant suppliers are audited annually. They are subject to an in-depth risk assessment to evaluate and ensure compliance with the Supplier Code of Conduct, laws and regulations, and various other measures.

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Supplier Capacity Building

Since 2018, EGCO Group has been consistently developing initiatives and organizing recurring activities aimed at taking supplier engagement to the next level.

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Related Documents

Policies, Requirements and Performance

Performance Data

Economic

Updated as of March 2023

The information reported above was prepared in accordance with the Global Reporting Initiative Standards (GRI Standards). It has been audited by an external party and has received limited assurance through the 2022 Annual Report.